User Account

All Pages

What is the net present value of this project

Assignment Help Financial Accounting
Reference no: EM132830731

Question - Lynas Ltd. is considering purchasing a new mining excavator that costs $1,500,000. The mining excavator will generate incremental revenues of $300,000 per year for ten years. The cash operating costs needed to generate these revenues will total $45,000 per year. The mining excavator will be depreciated on a straight-line basis over ten years to zero. Orange Ltd.'s tax rate is 30 percent, and its cost of capital is 7 percent.

(a) What is the net present value of this project?

(b) Should the company approve this project? Explain why or why not. (Show all of your calculation).

Reference no: EM132830731

Questions Cloud

Review the appropriate legislation and provisions : Review the assignment instructions and evaluation breakdown to ensure you understand the requirements and expectations.
How would you determine the sample type and size : Hypothetically, what sampling method would you use to conduct a study of your selected evidence-based practice problem/topic? Why? How would you determine the.
Describe your acculturation experience as a new graduate : Describe your acculturation experience as a new graduate to the culture of the nursing profession. How is it similar or different from the acculturation.
Determine whether you think the ipo was successful : Determine whether you think the IPO was successful and address if the company valued the IPO correctly.
What is the net present value of this project : Lynas Ltd. is considering purchasing a new mining excavator that costs $1,500,000. What is the net present value of this project
Discuss the company corporate strategy : Discuss the company's corporate strategy and explain what business the organization is in or wants to be in.
Compare qualitative and quantitative research designs : Compare and contrast qualitative and quantitative research designs. Think about this in terms of methodology and outcome. If you were to actually conduct your.
Explain the importance of each assertion in the audit : Explain the importance of each assertion in the audit of intangible assets. What are the different risks associated in the accounting of intangible assets
Strategic management process within global environment : Explain the strategic management process within the global environment. Identify challenges in strategy implementation.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd